The game plan begins on Monday when Cramer expects retaliation from China against President Trump’s harsh remarks on Friday. Cramer said he thinks it is not the right time to escalate the trade war and that it could have more significant impacts on the economy than in previous cycles, fought when the economy was strong and unemployment was low.
Then on Tuesday we get income from Zoom Video ((ZM) – Get a report and CrowdStrike ((CRWD) – Get a report, two glowing stocks that thrive in our home economy. Wednesday sees another quarantine stock, Campbell Soup Co. ((CPB) – Get a report. Cramer wants to know if the hoarding phase is over or if this recession stock will continue to increase.
Most of the winnings come Thursday when we hear JM Smucker ((SJM) – Get a report, Broadcom ((AVGO) – Get a report, Gap Stores ((GPS) – Get a report, Soft ((JOB) – Get a report and DocuSign ((DOCU) – Get a report. Cramer was a fan of all of these names, with the exception of Gap Stores. He said investors simply shouldn’t own second-rate retailers.
But the big event is Friday when we learn about the non-farm payrolls for May. Cramer said there will be huge job losses that will cement investors’ hearts on how bad the coming recession will be.
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Management decision: Zscaler
In his first segment “Executive Decision”, Cramer spoke with Jay Chaudhry, president and CEO of cybersecurity company Zscaler ((ZS) – Get a report with stocks that have risen 29% today. Zscaler shares are up 111% over the year.
Chaudhry said Zscaler’s mission from the start was to allow employees to work from anywhere, so when the pandemic hit, they were ready and could help companies quickly transition their workforce towards remote work. Zscaler has also worked closely with the federal government, recently in partnership with the Department of Defense for up to 500,000 users.
Chaudhry added that the cybersecurity market is large enough for all players, but those in the cloud will be the big winners. With the deployment of 5G wireless technology, many people will no longer even need traditional networks, and this comes with new opportunities.
Executive decision: e.l.f.
For its second segment “Executive Decision”, Cramer also spoke with Tarang Amin, president and CEO of e.l.f. Beauty ((ELF) – Get a report, who found himself in a proxy fight with activist investor, Marathon Partners.
Amin said e.l.f. works well. The company’s declines in 2018 were a wake-up call. Since then, they have focused on five new initiatives and have had five consecutive quarters of year-over-year sales growth as they continue to gain market share.
Asked about the effects of the pandemic, Amin said they had initially seen a decline, but in the past four weeks, consumption has increased 11%. He said their partnerships with Target ((TGT) – Get a report and Walmart ((WMT) – Get a report continue to perform well. Walmart and Ulta Beauty ((ULTA) – Get a report extend their e.l.f. imprint within their stores.
Amin also commented on their viral campaigns on TikTok. He said young consumers love their products and that 4.5 billion views of their campaigns have drawn the vitality of brand loyalty.
Executive decision: quickly
For his latest executive decision segment for the week, Cramer checked out Joshua Bixby, CEO of content delivery provider Fastly ((FSLY) – Get a report. Fastly shares are up 115% for the year.
Bixby said the pandemic is compressing the digital transformation that is already happening in businesses. Fastly was designed to help content creators and developers bring their code and content to the world. He said no one could have predicted the pandemic, but this has allowed many people to innovate in new ways.
Bixby said that Fastly’s services are essential to the mission of businesses, and that they have been able to grow and adapt to meet their needs.
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Buy when others sell
Everyone loves a story that makes sense, Cramer told viewers, but sometimes confusing stories create the greatest opportunities. Concrete example, Salesforce.com ((CRM) – Get a report and Costco ((COST) – Get a report.
Salesforce Hits A Wave Of Sales After The Company Lowered Its Forecast, But Cramer noted A Crisis Is A Terrible Something To Lose, And Salesforce Follows The Same Game Book They Used In The 2008 Crisis , spending more to dominate the competition.
The same goes for Costco. The company has chosen to close some very profitable services, such as glasses, hearing aids and their cafeteria, until they figure out how to open these areas safely. The advantage? This must-have retailer was able to stay open thanks to the integrated social remoteness of its extra-wide aisles.
That’s why it’s useful to do homework and buy when others are selling.
Here’s what Jim Cramer had to say about some of the stocks that the callers offered during the Mad Money Lightning Round on Friday night:
Hercules Capital ((HTGC) – Get a report: “We don’t know what they have. “
Caleres ((CAL) – Get a report: “I would take the money and run. “
Cognex ((CGNX) – Get a report: “I love these guys. They do things in the United States and should be celebrated. “
Anheuser-Busch InBev ((BUD) – Get a report: “I like Constellation brands ((STZ) – Get a report more. “
Nio ((NIO) – Get a report: “No, no, you deserve Tesla ((TSLA) – Get a report. “
Noble energy ((NBL) – Get a report: “Noble is a good company but it’s oil and I prefer to see you grow. “
Frontline ((FRO) – Get a report: ” It’s a job. I’m looking for investments. If you want oil, go with Chevron ((CVX) – Get a report. “
DraftKings ((DKNG) – Get a report: “It’s a great game about the return of sports. “
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At the time of publication, Cramer Action Alerts PLUS had a position in CRM, COST.